Market slows despite earlier optimism: JLL

By Tan Chee Yuen / JLL | May 20, 2016 9:30 AM SGT
URA data shows that developers sold 745 private residential units in April, down 11.6% from 843 units in March. On a y-o-y basis, the decline is more significant, down 36.2% from 1,167 units in April 2015.
Two new private residential projects were launched last month — Sturdee Residences on Sturdee Road in the Jalan Besar-Little India neighbourhood and The Asana on Queen’s Road in prime District 10. Sturdee Residences sold 126 units (41.3%) out of a total of 305 in the project, at a median price of $1,620 psf. Meanwhile, the 48-unit The Asana released 10 units last month, but none was sold as at end-April.
The encouraging sales in March had spurred developers to release new phases of existing projects, leading to a 32% increase in total private residential units launched in April to 900. “However, there was not enough demand to match the 900 units placed on the market”, says Ong Teck Hui, JLL’s national director of research and consultancy. “This indicates that market confidence is still lacking in spite of the recent uplift in sentiments.” Developers remain cautious while buyers are selective and price-sensitive, he adds.
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The executive condominium market saw the most number of units launched in 17 months, with 1,260 units placed on the market in April. However, take-up was moderate, with 546 units (43.3%) sold. The two new EC projects launched last month were the 632- unit The Visionaire on Canberra Drive and the 628-unit Parc Life on Sembawang Road. The Visionaire saw 154 units sold at a median price of $821 psf, while Parc Life sold 51 units at a median price of $784 psf.